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Saturday’s: 9AM 1590 AM/97.9 FM KVTA
Sunday’s: 7AM K-EARTH 101 FM
Listen Live
Saturday’s: 9AM 1590 AM/97.9 FM KVTA
Sunday’s: 7AM K-EARTH 101 FM
MBS OVERVIEW
Our benchmark FNMA MBS 6.00 July Coupon is currently up just +6 BPS.
Rosie the Riveter: The June Dallas Fed Manufacturing Survey continued to slump with a contractionary reading of -26.5 which follow May’s very weak -29.1.
Treasury Dump: We kicked off three days of dumping our debt into the marketplace with our shorter term 2 year note auction. $42B went off at a high yield of 4.670%. Demand was strong with a bid-to-cover ratio of 2.86.
On Deck for Tomorrow: Durable Goods Orders, Richmond Fed Manufacturing Index, Case Shiller, FHFA Housing Price Index, New Home Sales, Consumer Confidence, 5 year note auction.
Quiet today in the rate markets, no data. Early this morning the 10 yield fell to 3.68% for just a minute or so then eased back up to 3.73%. The 200 day moving averages and chart support at 3.69% the low yield going back to the beginning of June. For the month, the 10 has traded between 3.80% and 3.69%. MBS prices had little change most of the session most up 5 bps.
Treasury sold $42B of 2 yr notes this afternoon. A strong auction, in the WI trade the yield was 4.678%, at the auction 4.670%. Bid/cover 2.86 compared to 2.63 average, foreign investors (indirects) took 68.5% compared to 58.8%, domestic buyers got 18.2% down frm the average of 21.3%.
The Russian dust up over the weekend had no influence on global markets, but it indicates Putin is getting on thin ice as the war drags on, Russians increasingly getting fed up with and the deaths it is causing. Next year Putin up for re-election if he doesn’t step aside before then, and that isn’t likely although his popularity is sinking quickly with the people that so far are afraid to speak out much. Prigozhin’s issue is with the Russian commanders that continue to fail. Putin called the Wagner Group’s (Prigozhin’s private army) rebellion over the weekend a “criminal activity,” and said its organizers would be “brought to justice.”, commenting any attempts to organize mutiny “will end in defeat.”
Tomorrow markets get data; May durable goods orders (-1.0%, ex transportation 0.0%, yr/yr). April Case/Shiller home price index (+0.5%, yr/yr -2.3%). June consumer confidence from the Conference Board (103.7 frm 102.3 in May). May new home sales (663K frm 683K in April). Treasury will sell $43B of 5 yr notes. The key data, the consumer confidence index.
